Real estate agents to apply for banking licenses.

Q: What is the current status for real estate agents to apply for banking licenses?

Shantanu Kumar, Mumbai

5th February 2013

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Replies (4)

With the change in status, it will be a good news for the private realtors and brokers or banking aspirants who have been on the window sill to get into banking business.

Ashish Sharma, Mumbai

11th February 2013

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Now, the government also wants the bank to change the norms as it is improper to generalize all real estate firms as bad or all brokerages are good.

Jerome Fernandez, Mumbai

11th February 2013

Comment

In August 2011, RBI made the draft guidelines which stated that companies with an exposure of 10% or more to real estate and brokerage businesses by revenue cannot seek permits to enter banking sector in India. This rule made most of the realtors and brokerages ineligible to apply.
RBI had made this norm as it had past experiences with the brokers which was not satisfactory. Thus, they came up with the regulations to ensure that any group undertaking such activities on a significant scale is not considered for a bank licence.

Sanjana Jain, Mumbai

11th February 2013

Comment

Now, real estate brokers and agents may be allowed to apply for bank licenses. In a recent proposal, the Reserve Bank of India (RBI) may set aside reservations on real estate firms and brokerages and allow them to obtain license.
The proposal will be formalised in the central bank’s final guidelines but there is no certainty yet that such entities will get green signal.

Suresh Khanna, Mumbai

11th February 2013

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